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Philip Morris International (NYSE:PM) announced an investment of $600 million over the next two years through one of its U.S. affiliates to open a state-of-the-art manufacturing facility in Aurora, Colorado. The facility is being built to produce Swedish Match ZYN nicotine pouches to help meet the growing global demand from legal-age consumers for smoke-free products.
"PMI and its U.S. affiliates are accelerating their mission to move adults who smoke away from cigarettes in the U.S. by investing in new U.S. manufacturing capacity to meet the increasing demand for nicotine options that are scientifically substantiated as better alternatives," stated PMI Americas President and U.S. CEO Stacey Kennedy. "We believe Colorado is like-minded in its commitment to innovation, economic opportunity and public health," added Kennedy.
The company's U.S. affiliate plans to break ground on the new facility later this year and to begin preliminary operations by the end of 2025, with regular production starting in 2026. The construction phase of the project alone is expected to create nearly 5,000 jobs related to the building of the facility, with nearly $1 billion in economic impact.
As previously announced, Swedish Match North America is also currently working to increase ZYN oral nicotine pouch production at its Owensboro, Kentucky, facility. Ongoing investments in both Owensboro and Aurora are designed to provide sufficient capacity in the near and midterm for the current adoption growth rate of ZYN among U.S. adult nicotine consumers, as well as capacity for exports.
Philip Morris (PM) first entered the U.S. market following its acquisition of Swedish Match in late 2022. Swedish Match's ZYN oral nicotine pouches have been on the market in the U.S. for more than a decade and are designed as a better option for legal-age consumers who smoke and wish to continue using nicotine.
Shares of Philip Morris International (PM) were flat in premarket trading on Tuesday. The tobacco stock is up more than 11% on a year-to-date basis.
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